Restructuring Activities

9 Months Ended

Nov. 01, 2025

Restructuring and Related Activities [Abstract]

Restructuring Activities

Restructuring Activities

In the third quarter and year-to-date 2025, the Company implemented a series of strategic leadership appointments and restructuring actions designed to accelerate growth and continue to restructure its executive leadership team and organizational structure. Pre-tax severance, relocation and other expenses related to these activities of $9 million, of which $8 million are included in General, Administrative and Store Operating Expenses and $1 million are included in Costs of Goods Sold, Buying and Occupancy, are included in the third quarter of 2025 Consolidated Statement of Loss. Pre-tax severance, relocation and other expenses related to these activities of $13 million, of which $10 million are included in General, Administrative and Store Operating Expenses and $3 million are included in Costs of Goods Sold, Buying and Occupancy, are included in the year-to-date 2025 Consolidated Statement of Loss.

In the third quarter of 2024, the Company made certain executive leadership appointments and changes to restructure its executive leadership team, including the appointment of a new Chief Executive Officer (“CEO”), the termination of the previous CEO and the elimination of two executive officer roles. Pre-tax severance, relocation and other expenses related to these activities of $13 million were recorded in the third quarter of 2024 and are included in General, Administrative and Store Operating Expenses in the 2024 Consolidated Statements of Loss.

Year-to-date 2025, the Company made payments of $14 million related to severance and related costs associated with these restructuring actions implemented in fiscal years 2025 and 2024. Liabilities, after accrual adjustments, related to these restructuring actions of $13 million are included in the November 1, 2025 Consolidated Balance Sheet.